A recent NRF and Shop.org study indicates that price is the number one factor to persuade consumers to shop at your online retail store. Price was designated by 67% of women and 58% of men all over the age of 18. After the actual price of the product the 2nd leading factor was shipping costs with assortment of merchandise in 4th.
Online retailers, according to the report, are encouraged to present a well rounded collection of items to help steer off competition. Retail websites with fewer products will lose market share and will not be able to maintain a steady stream of consumers required for long term growth. Assortment becomes even more important for consumers in the upper income bracket, who will hopefully spend more as well, where assortment and quality of merchandise is ranked higher.
While the results are not out of the ordinary an important issue to take from the report is that online retailers should maintain a steady value based pricing structure. Fluctuations in pricing should be kept to a minimum so consumers know your pricing points are fair, within market value and sales will occur at scheduled intervals.
How to achieve consumer growth and retention:
- Maintain a value based pricing structure.
- Stock quality brands and products.
- Maintain an assortment of merchandise, a thorough catalog of products.
- Compete on pricing (different to number 1).
- Offer discounted or free shipping where possible.